// Urban Outfitters online sales rise in first quarter
// It warned that store sales could be down by over 60% in the second quarter
Urban Outfitters has said it expects store sales to be down by over 60 per cent in the second quarter due to “tepid” demand during the Covid-19 pandemic.
Despite this, there had been a 63 per cent rise in new online customers in the first quarter, while home products and casualwear were “overperforming”.
The group, which includes retailers Anthropologie and Urban Outfitters posted a preliminary net loss of $138 million (£110 million) for the three months to April 30.
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Net sales for the period fell by 31.9 per cent compared to the same period last year to $588 million (£471 million).
Total retail net sales decreased by 28 per cent, driven by negative retail store sales because of mandated closures.
However, this was partially offset by double-digit growth across digital channels.
Wholesale net sales declined by 74 per cent.
Meanwhile, the Anthropologie Group saw net sales drop 33 per cent, compared with 24 per cent at Urban Outfitters.
The group has 40 per cent of stores open, including 252 in North America and 27 in Europe.
It hopes to open a further 100 stores by the first week of June.
“We believe a return to near pre-virus levels will take many quarters and a medical vaccine or cure,” chief executive Richard Hayne said.
“I am incredibly proud of our teams for their hard work, dedication and resilience over the last two months.
“The actions we’ve taken during the quarter to strengthen our balance sheet and help preserve liquidity provides us with financial flexibility during this difficult period.
“I’m confident our proven ability to execute our multichannel, multi-brand, and multi-category strategy will ensure our future success.”
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